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Transition for display industry

[SERI FOCUS]

Apr 19,2010
The display industry has grown dramatically, with liquid crystal display and plasma display panel products together replacing demand for their cathode ray tube predecessors, boasting larger screen sizes and reaching ever higher performance levels.

However, as demand for CRT display devices winds down and the penetration rates of TVs and PCs in advanced markets rises, the rise in demand for display devices is forecast to slow. Also, slowing production of display devices with ever-larger screens and a drop in prices are contributing to the current decline of the display device industry. Next-generation technologies capable of reversing this downward trend are desperately needed, but conditions are inadequate.

In order to adapt to the change, the industry has been modifying its development channels toward a greater focus on user applications. Efforts are being made to increase user convenience via larger interfaces and to create more realistic displays. For example, users can now control devices with touchscreen interfaces, while 3-D displays provide a more realistic experience.

Also, the industry is expanding into other areas where displays can be used. Outdoor digital advertisements are replacing their analog counterparts, while e-books are challenging paper-based reading material. More new markets are being created via the incorporation of network-inclusive IT solutions into non-display products (e.g., electronic tables and vending machines).

In line with new development channels, companies that produce displays must also enact change. In the product planning and development phase, companies should adopt a user-centered perspective. In particular, technological innovations in the interface between IT devices and users should be sought.

Companies should also seek new markets through the convergence of existing technologies with displays. Lastly, firms must capitalize on display technology in the development of other IT devices and seek applications in traditional industries.

*The writer is a research fellow in the Macroeconomic Research Department at Samsung Economic Research Institute. For more SERI reports, please visit www.seriworld.org.


By Lee Chi-ho



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